Smartkarma Daily Briefs

Our NAV analysis of LG Corp suggests an implied market cap of 16.3 trillion won or 103,781 won per share which is 16% higher than current share price.
For holdco discount, we used a 50% holdco discount. If investors perceive improvement in value (such as through corporate governance improvements), the holdco discount on LG Corp would decline.
LG Corp’s shares are up 5.9% in the past six months, outperforming all the major LG Group related companies including LG Chem, LG H&H, LG Electronics, and LG Energy Solution.

Korea Small Cap Gem #27: Wins Co.

Wins Co. is engaged in the business of developing and supplying information security solutions and developing software related to network security to protect networks from cyber threats and viruses.
The company has a consistent growth in sales and profits. It also has a strong balance sheet. At the end of 2023, it had a debt ratio of 15.4%.
Wins Co is trading at EV/EBITDA of 1.7x, P/E of 7.8x, and P/B of 0.9x in 2024 which are 75%, 26%, and 25% lower than the historical valuation multiples.

Coursera Inc.: Initiation Of Coverage – What Makes This Ed-Tech Giant Tick? – Major Drivers

This is our first report on ed-tech major, Coursera.
The company had a successful fourth quarter, marking a strong close to the year.
The company welcomed 24 million new learners in this period, bringing their base to more than 140 million and seeing an increase in annual revenue of 21% over the previous year.

Larsen & Toubro (LT IN): Order Book Remains Robust Amidst Margin Concerns

By Tina Banerjee

In Q3FY24, Larsen & Toubro (LT IN) witnessed order inflow of INR 760bn (up 25% YoY) bolstering the order book to INR 4.7tn at the end of December 2023.
Margins continued to remain under pressure in 9MFY24 due to cost pressures in legacy jobs.
Strong project execution and healthy order book are expected to drive future growth with margins reviving after bottoming out.

C3.ai (AI):- Expansion Of The Generative AI Market & 3 Other Fundamental Aspects Fueling Its Growth!

This is our first report on AI software platform company, C3 AI. The company has demonstrated positive performance in their third-quarter fiscal 2024 results with a total revenue of $78.4 million, marking an 18% YoY growth and surpassing their guidance range.
The total number of customer engagements has also seen an increase of 80% compared to the previous year.
The company reported a non-GAAP gross profit of $54.7 million with a gross margin standing at 70%.

Kulicke and Soffa Industries: A Story Of Continued Leadership in Core Markets

This is our first report on capital equipment manufacturer, Kulicke and Soffa Industries Inc.
The company delivered their Q1 2024 earnings recently, announcing an impressive revenue of $171.2 million for the December quarter.
However, not all news from the call was as positive because GAAP net income stood at only $9.3 million, alongside non-GAAP earnings per share at $0.3. However, this was still slightly higher than the guidance midpoint.

Envestnet Inc.: Initiation Of Coverage – Discover the Top 6 Drivers Behind Its Rapid Expansion! – Financial Forecasts

This is our first report on Envestnet, a leading provider of integrated wealth management solutions.
The company announced strong financial results for the fourth quarter and full year of 2023 in its latest earnings call.
The company reported solid growth and successfully executed its strategic initiatives, leading to significant margin expansion.

Cheers! Raise a Glass to China Resources Beer (0291.HK)

By Rikki Malik

A liquid proxy for China’s recovering consumption (with no technology regulation risk)
A quality red chip company at a very reasonable valuation
Growing sales and margins as its premiumisation strategy is executed

Establishmnt Lbs Hldng (ESTA) – Monday, Dec 18, 2023

Establishment Labs is a Costa Rican company known for manufacturing and selling breast implants, with their Motiva implant gaining market share from competitors.
The stock price of ESTA has recently dropped significantly due to a weak Q3 and lowered guidance, presenting an opportunity for investors to get into the dominant player in the breast augmentation market at a discounted price.
With Motiva having a low rupture rate and no cases of associated cancers, analysts value ESTA at approximately $100 a share on a DCF basis, making it a compelling investment opportunity for potential growth.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief Macro: Portfolio Watch: Markets sniffing out the Chinese resurgence case and more

By Smartkarma Daily Briefs | Daily Briefs, Macro

In today’s briefing:

Portfolio Watch: Markets sniffing out the Chinese resurgence case
Steno Signals #91 – No more recessions ever!?
Multi-Faceted Factors Driving Gold Prices Higher in a Great Debasement and Geopolitical Trade
Gold and Bitcoin Rallye & CTA Positioning Update
The Week That Was in ASEAN@Smartkarma – SingTel & Optus, Jollibee Foods, and 14 Thai Stocks
Monday Macro – Asset allocation update, the Nvidia show, stubborn rates, and Gold
G5 Rates Watch: Mirror mirror on the wall, who’s the biggest interest rate cutter of them all?
Energy Cable #61: Commodities are breaking out #2!
EA: HICP Converging Close to 2%

Portfolio Watch: Markets sniffing out the Chinese resurgence case

By Elias Lisberg Glistrup

Macro Portfolio: Markets sniffing out the Chinese resurgence case. Our conviction in pro-cyclical trends have been confirmed in markets this week, and the case for a Chinese revitalisation is becoming increasingly stronger.
The continued surge in Copper this morning is noteworthy, particularly given the buildup of inventory by China in the past few months.
An increasing stockpile can be a positive indicator, especially if it results from a deliberate effort by China to restock in anticipation of an economic stimulus.

Steno Signals #91 – No more recessions ever!?

By Andreas Steno

Happy Sunday from Sunny Copenhagen and welcome to our flagship editorial! Is the business cycle dead?
It is a fair question to ask after what seems like years of recession chasing once again ending in tears for the macro bears.
This sublime graphic created by the great Lee Coppock is exceptionally telling.

Multi-Faceted Factors Driving Gold Prices Higher in a Great Debasement and Geopolitical Trade

By Said Desaque

Theories to explain gold price movements have a long history. Since the GFC, gold has increasingly become a proxy for rising risks of sovereign debt default and fiat money debasement.
Floating exchange rates made gold prices very sensitive to changes in US monetary conditions via a robust inverse relationship lasting until the GFC when new theories began to emerge.
There are numerous buyers augmenting gold demand, including central banks, retail investors and hedge funds. Weaponisation of the US dollar has increased the attraction of gold in international reserve management.

Gold and Bitcoin Rallye & CTA Positioning Update

By The Commodity Report

Gold and Bitcoin prices both remain massively supported by easing financial conditions and a bunch of liquidity in the market.
While the Fed Funds Rate remains high at 5,5% – liquidity conditions in the market is what really matters for both safe haven assets.
Meanwhile, J.P. Morgan announced that gold is their number one pick in the commodities market. According to them, the price has room to rise towards $2.500.

The Week That Was in ASEAN@Smartkarma – SingTel & Optus, Jollibee Foods, and 14 Thai Stocks

By Angus Mackintosh

The past week saw insights on Singtel (ST SP) and Optus, Jollibee Foods (JFC PM), MK Restaurants Group (M TB) and Agung Podomoro Land (APLN IJ).
There was also a thematic insight looking at the rise of BNPL, a sector piece on APAC Luxury, and 14 stocks to own in Thailand from Dr Andrew Stotz, CFA.
The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across Southeast Asia.

Monday Macro – Asset allocation update, the Nvidia show, stubborn rates, and Gold

By Adventurous Investor

I’ve promised to keep updating my asset allocation tables every couple of months – and, on cue, here they are!
They come in two guises. The first, below, is my overall take on the range of asset classes. There aren’t any changes this time. I’m still wary of equities, especially US equities, though, paradoxically, if I must own US equities, I would rather own the really big mega-cap tech names.
I have a neutral position overall in equities, which implies a 60/40 equities/bonds balance, which hasn’t changed for a while – I wouldn’t be racing to put even more money to work in equities.

G5 Rates Watch: Mirror mirror on the wall, who’s the biggest interest rate cutter of them all?

By Andreas Steno

The central bank outlook looks surprisingly uniform as the market has homed in on June as the first timing for the cutting cycle from most major central banks (except the BoJ).
Markets feel certain that the SNB and the ECB cuts in June (we agree), but Fed, RBA, BOC and BoE pricing is closing on 50/50 calls after a series of sticky inflation numbers from North America.
The Fed is priced hawkishly relative to the 75bps dot plot for 2024, while the ECB is the most dovish central bank in forward pricing for 2024 but yet falls short of the 100bps hinted by the Greek member Stournaras last week.

Energy Cable #61: Commodities are breaking out #2!

By Ulrik Simmelholt

Last week we wrote about the price action in commodities and the week ended in some strong gains across the space.
Our portfolio remains tilted strongly towards cyclical / inflationary bets such as materials and crude.
For the whole portfolio click here: Steno Research Portfolio.

EA: HICP Converging Close to 2%

By Phil Rush

In the final print, headline EA inflation was confirmed as slowing by 0.2pp to 2.6%. The 0.1pp of upside from the flash was genuine and even worse in services.
January’s divergence in the underlying inflationary impulse was resolved with clustering nearer 2%, potentially consistent with a sustainable return to the inflation target.
Lower energy costs may flatter the picture, while strong services inflation suggests wage growth remains too high. We still see the ECB’s first cut rolling to September.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief Crypto: Crypto Crisp: Profit-Taking and more

By Smartkarma Daily Briefs | Crypto, Daily Briefs

In today’s briefing:

Crypto Crisp: Profit-Taking

Crypto Crisp: Profit-Taking

By Mads Eberhardt

Recently, we have voiced our concerns about the excessive use of leverage in the crypto market.
Just last week, traders were facing annual rates of up to 150% to maintain long positions in Bitcoin on the perpetual market.
By the end of the week, it became evident that this approach was unsustainable, leading to a significant market correction and extensive liquidations in the futures market.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief Financials: ICICI Securities Ltd, Tokio Marine Holdings, Bitcoin, EML Payments Limited and more

By Smartkarma Daily Briefs | Daily Briefs, Financials

In today’s briefing:

ICICI Securities : A Special Situation Play with Limited Downside
Tokio Marine Cross-Shareholding – At Least US$18bn of Cross-Shareholding to Sell
Crypto Crisp: Profit-Taking
EML Payments – Sale of Sentenial agreed

ICICI Securities : A Special Situation Play with Limited Downside

By Nimish Maheshwari

ICICI Securities Shareholders will consider delisting proposal at the end of March-24 which will decide its fate
Swap Ratio based on current prices offers limited downside for I-Sec Shareholders if delisting goes through.
There could be potential upside of 20% if delisting fails.

Tokio Marine Cross-Shareholding – At Least US$18bn of Cross-Shareholding to Sell

By Sumeet Singh

The Japanese Financial Services Agency has asked the general insurers to reduce/eliminate their cross-shareholdings.
Tokio Marine Holdings (8766 JP) had a stake over US$100m in at least 33 listed Japanese stocks, amounting to a total of US$16.5bn.
In this note, we take a look at its stakes in various companies to see which ones could possibly be candidates for further selldowns.

Crypto Crisp: Profit-Taking

By Mads Eberhardt

Recently, we have voiced our concerns about the excessive use of leverage in the crypto market.
Just last week, traders were facing annual rates of up to 150% to maintain long positions in Bitcoin on the perpetual market.
By the end of the week, it became evident that this approach was unsustainable, leading to a significant market correction and extensive liquidations in the futures market.

EML Payments – Sale of Sentenial agreed

By Edison Investment Research

EML Payments has agreed to sell Sentenial to GoCardless for an enterprise value of €32.75m/A$54.1m. As Sentenial is currently loss-making, the disposal will be earnings and cashflow accretive to EML in year one. Proceeds from the sale will be used to reduce debt and strengthen EML’s balance sheet. This disposal combined with the liquidation of PFS Card Services Ireland (PCSIL) leaves EML as a more focused group specialising in prepaid cards, with all remaining businesses profitable and cash generating.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief Energy/Materials: JSR Corp, Orecorp Ltd, Gold, Alternus Clean Energy Inc, Wheaton Precious Metals, Chariot Limited, Evolution Petroleum, Pulsar Helium, ADX Energy Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Energy & Materials Sector

In today’s briefing:

JSR (4185 JP) – Launch of The Official Tender Offer (And the Double Arb)
JSR Corporation (4185 JP): JIC Tender Starts and Should Succeed Despite Shin-Etsu’s Re-Rating
Orecorp Should Now Back Perseus’ Offer
Gold and Bitcoin Rallye & CTA Positioning Update
Alternus Clean Energy, Inc. – Going Vertical with Alternus
Wheaton Precious Metals – Celebrating the Ides of March
Chariot Limited (AIM: CHAR): Initiating a strategic review of the Transitional Power business to focus on gas
Evolution Petroleum Corp. – Organic Development Portfolio Creates Capital Allocation Choices
Pulsar Helium Inc. (TSX-V: PLSR): Helium Concentration of 13.8%
ADX Energy (ASX: ADX): Very high impact exploration well encounters gas and condensate in Austria

JSR (4185 JP) – Launch of The Official Tender Offer (And the Double Arb)

By Travis Lundy

The Tender Offer is finally here. JIC announced the official launch after the close today.
JIC appears to be taking on the SUNY RF risk as-is. The Tender Offer details vs the original expectations in the late June 2023 document are unchanged.
Once started, unless a US court approves an injunction causing regulatory delay, this is done. But there are path events. And of course there is a double arb here.

JSR Corporation (4185 JP): JIC Tender Starts and Should Succeed Despite Shin-Etsu’s Re-Rating

By Arun George

JSR Corp (4185 JP) notes that the pre-condition for JIC’s tender has been satisfied. The offer price remains unchanged at JPY4,350 per share.
The offer remains attractive despite the material re-rating of peers. The tender should succeed when combined with shareholder fatigue and a lack of vocal opposition.
The tender requires a 66.7% minority acceptance rate. The gross and annualised spread for a 23 April payment is 0.6% and 7.1%, respectively.

Orecorp Should Now Back Perseus’ Offer

By David Blennerhassett

Back in August, Silvercorp (SVM CN) bid A$0.15/share and 0.967 scrip for Orecorp (ORR AU); and secured board support after bumping the cash portion to A$0.19/share via an Off-market Offer.
Perseus Mining (PRU AU) countered on the 22 January with a A$0.55/share Offer, which was rejected by Orecorp, ostensibly over concerns Perseus had not secured Tanzanian Fair Competition Commission approval.
That regulatory approval has now been satisfied. The Offers for both Perseus and Silvercorp are conditional on 50.1% acceptance hurdles. I think Perseus’ all-cash Offer is superior.

Gold and Bitcoin Rallye & CTA Positioning Update

By The Commodity Report

Gold and Bitcoin prices both remain massively supported by easing financial conditions and a bunch of liquidity in the market.
While the Fed Funds Rate remains high at 5,5% – liquidity conditions in the market is what really matters for both safe haven assets.
Meanwhile, J.P. Morgan announced that gold is their number one pick in the commodities market. According to them, the price has room to rise towards $2.500.

Alternus Clean Energy, Inc. – Going Vertical with Alternus

By Water Tower Research

Alternus Clean Energy, Inc. (Alternus) is a transatlantic clean energy independent power producer (IPP) that develops, installs, owns, and operates small utility-scale and community solar parks (5 MW to 200 MW) in the US and Europe.
The company aims to reach 1.5 GW of operational projects through organic development and strategic acquisition within the next three years.
Alternus differentiates itself by focusing on small utility-scale and community solar projects with a fully vertically integrated execution strategy ranging from project development through to long- term asset management.

Wheaton Precious Metals – Celebrating the Ides of March

By Edison Investment Research

Wheaton’s (WPM’s) Q4/FY23 results were released after the market close on 14 March, within the context of known metals sales and almost known production. Even so, net earnings were US$2.9m (or 1.8%) better than our prior forecast for the quarter, largely as a result of achieved metals prices that were higher than average market prices. Otherwise, the quarter was characterised by accelerated levels of investment into underlying mineral streams and the announcement of a new, progressive dividend policy.

Chariot Limited (AIM: CHAR): Initiating a strategic review of the Transitional Power business to focus on gas

By Auctus Advisors

• Chariot is initiating a strategic review of its Transitional Power business.
• The business includes multiple wind and solar projects in Southern Africa (with a solar project already operational in Burkina Faso).
It also includes a power trading licence in South Africa.

Evolution Petroleum Corp. – Organic Development Portfolio Creates Capital Allocation Choices

By Water Tower Research

Encouraging initial results from both the Chaveroo Oilfield Strategic Partnership and the recently closed SCOOP/STACK acquisition point to the merits of adding an organic growth element to Evolution’s asset base.
The addition increases management’s capital allocation choices to balance reinvesting in the underlying asset base, reducing leverage, and returning cash to shareholders.
The first three horizontal wells in the Chaveroo field have met or exceeded pre-drill expectations.

Pulsar Helium Inc. (TSX-V: PLSR): Helium Concentration of 13.8%

By Auctus Advisors

The analysis of eleven samples from the Jetstream #1 well at Topaz by two different laboratories revealed helium content of up to 13.8%, specifically from a sample obtained at 1,801ft in-hole depth.
Because of the clear presence of small amounts of atmospheric air contamination in the samples, a third party expert from the Woods Hole Oceanographic Institution concluded that 13.8% helium should be considered as representing a minimum concentration estimate .
The analysis demonstrates an increase from the previous estimates from measurements on site of up to 12.4% helium concentration.

ADX Energy (ASX: ADX): Very high impact exploration well encounters gas and condensate in Austria

By Auctus Advisors

The Welchau well (ADX WI: 75%) encountered 115 m of liquids-rich gas shows in the primary target formation (Steinalm Formation) between 1452 m and 1567 m.
The deepest gas shows were encountered at a depth of 1645 m.
The well has reached TD at 1733 m.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief TMT/Internet: Tata Consultancy Svcs, Wins Co Ltd, C3.ai Inc, Kulicke And Soffa Industries,, Envestnet Inc, IonQ , N-able , Progress Software, Fastly Inc, Cargurus and more

By Smartkarma Daily Briefs | Daily Briefs, TMT/Internet

In today’s briefing:

TCS US$1.1bn Placement – Relatively Small but Isn’t Well Flagged, Could Have Implications for Others
Korea Small Cap Gem #27: Wins Co.
C3.ai (AI):- Expansion Of The Generative AI Market & 3 Other Fundamental Aspects Fueling Its Growth!
Kulicke and Soffa Industries: A Story Of Continued Leadership in Core Markets
Envestnet Inc.: Initiation Of Coverage – Discover the Top 6 Drivers Behind Its Rapid Expansion! – Financial Forecasts
IonQ Inc.: Initiation Of Coverage – Accelerating Innovation Through Hybrid Quantum Computing! – Major Drivers
N-able Inc.: Initiation Of Coverage – Investment & Operation With A Growing Total Addressable Market (TAM)! – Major Drivers
Progress Software Corporation: Initiation Of Coverage – Decoding the 4 Primary Contributors to Its Growth Surge! – Major Drivers
Fastly Inc: What Is Its Biggest Competitive Advantage? – Major Drivers
CarGurus Inc.: Initiation Of Coverage – Does Its Value Proposition Truly Constitute A Competitive Advantage? – Major Drivers

TCS US$1.1bn Placement – Relatively Small but Isn’t Well Flagged, Could Have Implications for Others

By Sumeet Singh

Tata Sons, holding company of Tata Group, is looking to raise around US$1.1bn via selling a 0.65% stake in Tata Consultancy Svcs (TCS IN).
The deal doesn’t appear to be well-flagged although it could be part of Tata Sons’ recent moves to avoid an RBI mandated listing next year.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.

Korea Small Cap Gem #27: Wins Co.

Wins Co. is engaged in the business of developing and supplying information security solutions and developing software related to network security to protect networks from cyber threats and viruses.
The company has a consistent growth in sales and profits. It also has a strong balance sheet. At the end of 2023, it had a debt ratio of 15.4%.
Wins Co is trading at EV/EBITDA of 1.7x, P/E of 7.8x, and P/B of 0.9x in 2024 which are 75%, 26%, and 25% lower than the historical valuation multiples.

C3.ai (AI):- Expansion Of The Generative AI Market & 3 Other Fundamental Aspects Fueling Its Growth!

This is our first report on AI software platform company, C3 AI. The company has demonstrated positive performance in their third-quarter fiscal 2024 results with a total revenue of $78.4 million, marking an 18% YoY growth and surpassing their guidance range.
The total number of customer engagements has also seen an increase of 80% compared to the previous year.
The company reported a non-GAAP gross profit of $54.7 million with a gross margin standing at 70%.

Kulicke and Soffa Industries: A Story Of Continued Leadership in Core Markets

This is our first report on capital equipment manufacturer, Kulicke and Soffa Industries Inc.
The company delivered their Q1 2024 earnings recently, announcing an impressive revenue of $171.2 million for the December quarter.
However, not all news from the call was as positive because GAAP net income stood at only $9.3 million, alongside non-GAAP earnings per share at $0.3. However, this was still slightly higher than the guidance midpoint.

Envestnet Inc.: Initiation Of Coverage – Discover the Top 6 Drivers Behind Its Rapid Expansion! – Financial Forecasts

This is our first report on Envestnet, a leading provider of integrated wealth management solutions.
The company announced strong financial results for the fourth quarter and full year of 2023 in its latest earnings call.
The company reported solid growth and successfully executed its strategic initiatives, leading to significant margin expansion.

IonQ Inc.: Initiation Of Coverage – Accelerating Innovation Through Hybrid Quantum Computing! – Major Drivers

This is our first report on quantum computing systems producer, IONQ. The company has reported its Fourth Quarter and Full Year 2023 earnings, showing strong performance within the quantum computing sector.
The company generated $6.1 million in Q4, bringing the total recognized revenue to over $22 million for the full year, exceeding the upper end of their projected range.
For the year, IonQ achieved $65.1 million in bookings, greatly surpassing its original bookings midpoint of $40 million, providing evidence of successful performance by both the technical and commercial team.

N-able Inc.: Initiation Of Coverage – Investment & Operation With A Growing Total Addressable Market (TAM)! – Major Drivers

This is our first report on cloud-based solutions provider, N-able Technologies Inc.
The company reported a solid performance for the fourth quarter and fiscal year 2023, celebrating a revenue growth of 14% in constant currency for the whole year, and 11% for the fourth quarter.
The adjusted EBITDA in the fourth quarter was reported as $39.2 million, showing a 36% margin, and $143.4 million for the full year, indicating a 34% margin.

Progress Software Corporation: Initiation Of Coverage – Decoding the 4 Primary Contributors to Its Growth Surge! – Major Drivers

Progress Software Corporation concluded its fourth fiscal quarter of 2023 with strong performance across its portfolio, especially in its OpenEdge, DataDirect, and Sitefinity products.
The company recorded top-line revenues of $178 million, which can be attributed to stable demand for its products.
Further, the company’s net retention rate was commendable, remaining at a steady 100%, and operating margins were better than expected.

Fastly Inc: What Is Its Biggest Competitive Advantage? – Major Drivers

This is our first report on edge cloud platform provider, Fastly.
The company reported its fourth quarter 2023 earnings with revenue of $506 million, a 17% year-over-year growth.
The company also reported a record fourth-quarter revenue of $137.8 million, a 15% year-over-year and 8% quarter-over-quarter increase.

CarGurus Inc.: Initiation Of Coverage – Does Its Value Proposition Truly Constitute A Competitive Advantage? – Major Drivers

This is our first report on online automotive marketplace, CarGurus.
The company ended 2023 on a strong note, surpassing expectations and successfully accelerating their revenue growth across their platform.
Despite challenges faced by customers, such as weak consumer demand, the lack of affordability, and increased costs linked to floor plan financing, CarGurus’ listings business demonstrated commendable resilience, pricing power, and growth acceleration.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief Industrials: LG Corp, Samsung C&T, Larsen & Toubro, Lindbergh SpA, IMCD Group NV, easyJet PLC, Resideo Technologies Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

LG Corp: Updated NAV Analysis Amid Ongoing Corporate Value Up Program in Korea
Exploring Trading Setups Utilizing NPS’s ESG Fund Flows After July
Larsen & Toubro (LT IN): Order Book Remains Robust Amidst Margin Concerns
Lindbergh Spa:Revolutionizing MRO Markets Through Platform-Based Logistics and Engineering
Imcd N.V. (IMCD) – Monday, Dec 18, 2023
European Airlines – Increasing Confidence in LCC Summer Pricing and Profitability
Resideo Technologies Inc.: Initiation Of Coverage – The 4 Fundamental Aspects Fueling Its Growth Uncovered! – Major Drivers

LG Corp: Updated NAV Analysis Amid Ongoing Corporate Value Up Program in Korea

Our NAV analysis of LG Corp suggests an implied market cap of 16.3 trillion won or 103,781 won per share which is 16% higher than current share price.
For holdco discount, we used a 50% holdco discount. If investors perceive improvement in value (such as through corporate governance improvements), the holdco discount on LG Corp would decline.
LG Corp’s shares are up 5.9% in the past six months, outperforming all the major LG Group related companies including LG Chem, LG H&H, LG Electronics, and LG Energy Solution.

Exploring Trading Setups Utilizing NPS’s ESG Fund Flows After July

By Sanghyun Park

From July, Korea’s listed firms will disclose value enhancement plans. Korea’s NPS may exclude non-compliant firms, pending official response, though internal review suggests likely implementation.
It’s crucial to know portfolio stocks for proactive positioning. A setup targeting potential exclusion from NPS’s ESG funds due to post-July compliance must be designed.
Managers often use KRX ESG Leaders 150, aligning portfolios with it. Thus, it’s crucial to use this list for post-July compliance monitoring and to adapt setups for NPS’s flow impacts.

Larsen & Toubro (LT IN): Order Book Remains Robust Amidst Margin Concerns

By Tina Banerjee

In Q3FY24, Larsen & Toubro (LT IN) witnessed order inflow of INR 760bn (up 25% YoY) bolstering the order book to INR 4.7tn at the end of December 2023.
Margins continued to remain under pressure in 9MFY24 due to cost pressures in legacy jobs.
Strong project execution and healthy order book are expected to drive future growth with margins reviving after bottoming out.

Lindbergh Spa:Revolutionizing MRO Markets Through Platform-Based Logistics and Engineering

By Contrarian Cashflows

Lindbergh Spa operates a sophisticated digital platform model for logistics and engineering services within the Italian and French MRO (Maintenance, Repair, and Operations) market.
This approach not only supports strong operating margins but also provides value-added services in an industry typically marked by commoditization.
Distinguishing itself as the sole competitor with such a differentiated business model, Lindbergh faces formidable barriers to entry.

Imcd N.V. (IMCD) – Monday, Dec 18, 2023

IMCD is a global specialty chemicals distributor headquartered in the Netherlands with a strong presence in the Americas, EMEA, and Asia-Pacific regions.
The company is currently led by CEO Piet van der Slikke and CFO Hans Kooijmans, who are transitioning leadership to Valerie Diele-Braun.
IMCD has a diversified geographic footprint and operates in multiple countries, positioning it for continued success in the specialty chemicals industry.

European Airlines – Increasing Confidence in LCC Summer Pricing and Profitability

By Neil Glynn

Summer pricing data suggests growth yoy for European short haul carriers.
This prompts us to raise our easyJet PBT forecast 11% to £676m for FY24.
We continue to see underperforming Wizz Air as the carrier with greatest opportunity to improve perception towards it by executing well in summer 2024.

Resideo Technologies Inc.: Initiation Of Coverage – The 4 Fundamental Aspects Fueling Its Growth Uncovered! – Major Drivers

This is our first report on renowned manufacturer of comfort, residential thermal, and security solutions, Resideo Technologies, Inc.
The company concluded 2023 with solid Q4 revenue and profitability, beating the midpoint of its comprehension, underpinned by a vigorous cash generation with a full-year operating cash flow of $440 million.
The company gained traction throughout the year in order activity within Products and Solutions and made substantial strides in key strategic operational initiatives and significantly curbing structural costs.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief Industrials: LG Corp, Samsung C&T, Larsen & Toubro, Lindbergh SpA, IMCD Group NV, easyJet PLC, Resideo Technologies Inc and more

By Smartkarma Daily Briefs | Daily Briefs, Industrials

In today’s briefing:

LG Corp: Updated NAV Analysis Amid Ongoing Corporate Value Up Program in Korea
Exploring Trading Setups Utilizing NPS’s ESG Fund Flows After July
Larsen & Toubro (LT IN): Order Book Remains Robust Amidst Margin Concerns
Lindbergh Spa:Revolutionizing MRO Markets Through Platform-Based Logistics and Engineering
Imcd N.V. (IMCD) – Monday, Dec 18, 2023
European Airlines – Increasing Confidence in LCC Summer Pricing and Profitability
Resideo Technologies Inc.: Initiation Of Coverage – The 4 Fundamental Aspects Fueling Its Growth Uncovered! – Major Drivers

LG Corp: Updated NAV Analysis Amid Ongoing Corporate Value Up Program in Korea

Our NAV analysis of LG Corp suggests an implied market cap of 16.3 trillion won or 103,781 won per share which is 16% higher than current share price.
For holdco discount, we used a 50% holdco discount. If investors perceive improvement in value (such as through corporate governance improvements), the holdco discount on LG Corp would decline.
LG Corp’s shares are up 5.9% in the past six months, outperforming all the major LG Group related companies including LG Chem, LG H&H, LG Electronics, and LG Energy Solution.

Exploring Trading Setups Utilizing NPS’s ESG Fund Flows After July

By Sanghyun Park

From July, Korea’s listed firms will disclose value enhancement plans. Korea’s NPS may exclude non-compliant firms, pending official response, though internal review suggests likely implementation.
It’s crucial to know portfolio stocks for proactive positioning. A setup targeting potential exclusion from NPS’s ESG funds due to post-July compliance must be designed.
Managers often use KRX ESG Leaders 150, aligning portfolios with it. Thus, it’s crucial to use this list for post-July compliance monitoring and to adapt setups for NPS’s flow impacts.

Larsen & Toubro (LT IN): Order Book Remains Robust Amidst Margin Concerns

By Tina Banerjee

In Q3FY24, Larsen & Toubro (LT IN) witnessed order inflow of INR 760bn (up 25% YoY) bolstering the order book to INR 4.7tn at the end of December 2023.
Margins continued to remain under pressure in 9MFY24 due to cost pressures in legacy jobs.
Strong project execution and healthy order book are expected to drive future growth with margins reviving after bottoming out.

Lindbergh Spa:Revolutionizing MRO Markets Through Platform-Based Logistics and Engineering

By Contrarian Cashflows

Lindbergh Spa operates a sophisticated digital platform model for logistics and engineering services within the Italian and French MRO (Maintenance, Repair, and Operations) market.
This approach not only supports strong operating margins but also provides value-added services in an industry typically marked by commoditization.
Distinguishing itself as the sole competitor with such a differentiated business model, Lindbergh faces formidable barriers to entry.

Imcd N.V. (IMCD) – Monday, Dec 18, 2023

IMCD is a global specialty chemicals distributor headquartered in the Netherlands with a strong presence in the Americas, EMEA, and Asia-Pacific regions.
The company is currently led by CEO Piet van der Slikke and CFO Hans Kooijmans, who are transitioning leadership to Valerie Diele-Braun.
IMCD has a diversified geographic footprint and operates in multiple countries, positioning it for continued success in the specialty chemicals industry.

European Airlines – Increasing Confidence in LCC Summer Pricing and Profitability

By Neil Glynn

Summer pricing data suggests growth yoy for European short haul carriers.
This prompts us to raise our easyJet PBT forecast 11% to £676m for FY24.
We continue to see underperforming Wizz Air as the carrier with greatest opportunity to improve perception towards it by executing well in summer 2024.

Resideo Technologies Inc.: Initiation Of Coverage – The 4 Fundamental Aspects Fueling Its Growth Uncovered! – Major Drivers

This is our first report on renowned manufacturer of comfort, residential thermal, and security solutions, Resideo Technologies, Inc.
The company concluded 2023 with solid Q4 revenue and profitability, beating the midpoint of its comprehension, underpinned by a vigorous cash generation with a full-year operating cash flow of $440 million.
The company gained traction throughout the year in order activity within Products and Solutions and made substantial strides in key strategic operational initiatives and significantly curbing structural costs.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

✓ Unlimited Research Summaries
✓ Personalised Alerts
✓ Custom Watchlists
✓ Company Data and News
✓ Events & Webinars

Mar 19

Daily Brief Consumer: E.W. Scripps Co/The A, Coursera , Southern Cross Media, 99 Speed Mart Retail Holdings, Currys PLC, China Resources Beer Holdings, Tripadvisor Inc, Borussia Dortmund GmbH & Co KG, Health And Happiness (H&H), Playtika Holding Corp and more

By Smartkarma Daily Briefs | Consumer, Daily Briefs

In today’s briefing:

Quiddity Leaderboard S&P 500 Jun 24 Rebal: Many Intra-Review Changes Possible Due to M&A, Spin-Offs
Coursera Inc.: Initiation Of Coverage – What Makes This Ed-Tech Giant Tick? – Major Drivers
Southern Cross Media (SXL AU): Re-Engages with ARN Media (A1N AU)/Anchorage on Revised Terms
99 Speed Mart Retail Holdings Pre-IPO Tearsheet
Currys Lifts Profit Outlook After Suitors Walk Away
Cheers! Raise a Glass to China Resources Beer (0291.HK)
Tripadvisor Inc (TRIP) – Monday, Dec 18, 2023
Borussia Dortmund – Progressing nicely
Morning Views Asia: China Vanke , Nickel Industries
Playtika Holding Corp: Will The Direct-To-Consumer Platform Expansion Be A Game Changer?

Quiddity Leaderboard S&P 500 Jun 24 Rebal: Many Intra-Review Changes Possible Due to M&A, Spin-Offs

By Travis Lundy

The S&P 500 index tracks the 500 largest names listed in the US and it is one of the most highly-tracked indices in the world.
The index is reviewed quarterly. The next review will be in June 2024 and the evaluation date for the rankings for the constituent selection process is 6th June 2024.
In this insight, we take a look at the Potential ADDs and Potential DELs for the June 2024 index rebal event and the intra-review ADDs/DELETEs.

Coursera Inc.: Initiation Of Coverage – What Makes This Ed-Tech Giant Tick? – Major Drivers

This is our first report on ed-tech major, Coursera.
The company had a successful fourth quarter, marking a strong close to the year.
The company welcomed 24 million new learners in this period, bringing their base to more than 140 million and seeing an increase in annual revenue of 21% over the previous year.

Southern Cross Media (SXL AU): Re-Engages with ARN Media (A1N AU)/Anchorage on Revised Terms

By Arun George

Southern Cross Media (SXL AU) is re-engaging with ARN Media (A1N AU)/Anchorage at A$0.296 cash per share and 0.870 A1N shares per SXL share. Eligible shareholders get franking credits worth A$0.127.
SXL’s re-engagement was driven by major shareholders, who are also supporting a motion to remove Mr Rob Murray as chairman due to the glacial pace of negotiation.
While the offer is light compared to long-term adjusted exchange ratios and historical prices, large shareholders are supportive. Shares are trading through terms due to the large franking credits.

99 Speed Mart Retail Holdings Pre-IPO Tearsheet

By Clarence Chu

99 Speed Mart Retail Holdings (99SPD MK) is looking to raise around US$300m in its upcoming Malaysia IPO. The bookrunner on the deal is CIMB Investment Bank Berhad.
99 Speed Mart Holdings (99 Speedmart) operates the “99 Speedmart” chain of mini-market outlets, retailing daily necessities across Malaysia.
Based on IMR, the firm was the largest mini-market player and a leading groceries retailer in Malaysia, with a market share of 37.9% and 11.1% based on 2022 sales, respectively.

Currys Lifts Profit Outlook After Suitors Walk Away

By Jesus Rodriguez Aguilar

Neither Elliot nor JD.com (9618 HK) intend to pursue Currys PLC (CURY LN) at this stage and thus won’t be able to present an offer for the next six months.
Currys has issued an upbeat trading update. My new TP is 78p/share, >16% above Elliot’s sweetened offer, 10.4x 24e P/E vs 7.6x currently, and 9.1x 25e P/E vs 6.6x currently.
My TP implied equity value is 864 million. I believe the Board and top shareholders would be willing to consider offers around 80p.

Cheers! Raise a Glass to China Resources Beer (0291.HK)

By Rikki Malik

A liquid proxy for China’s recovering consumption (with no technology regulation risk)
A quality red chip company at a very reasonable valuation
Growing sales and margins as its premiumisation strategy is executed

Tripadvisor Inc (TRIP) – Monday, Dec 18, 2023

Viator offers a wide range of unique activities and tours around the world
The Fork allows users to book tables at restaurants globally
TripAdvisor remains a key player in the travel industry with an undervalued stock, presenting an attractive investment opportunity

Borussia Dortmund – Progressing nicely

By Edison Investment Research

Borussia Dortmund’s first team was successful in progressing through to quarter finals of the Champions League, which naturally leads to an upgrade in profit guidance for the year, as reaching the ‘round of 16’ was in prior guidance. This follows confirmation that the first team will compete in the revamped FIFA Club World Cup to be played in the summer of 2025, which is likely to be significant for financial results and very helpful in the long-term development of the brand and fanbase.

Morning Views Asia: China Vanke , Nickel Industries

By Leonard Law, CFA

China Vanke
Nickel Industries

Playtika Holding Corp: Will The Direct-To-Consumer Platform Expansion Be A Game Changer?